4 Job Market Realities that Could Change Your Future: You can level the playing field yourself!

Days ago, I asked Alexa to play my local news station for a traffic and weather update. Instead, I was greeted with a 30-second report that claimed economists have noted declining racial disparities in the hiring process! According to the report, a research organization affiliated with the Fed studied disparities in in the process back in 2003, and again this year. They found statistically significant improvements.

While we now have evidence that market forces, diversity, equity, and inclusion efforts, or both are beginning to level the playing field for us, it’s still important to consider the steps we can take to level the field for ourselves.

Here are four things to think about, in my view, as we look at a world that is trying to improve economic opportunities for everyone:

1. Research indicates discrimination has declined,
2. Soft skills are more important than ever,
3. You need technical and professional skills to do the job, and
4. Education makes a difference.

A trend toward less bias in resume screening may help you get work faster. You will also increase the likelihood of success when you have the right skills and education.

Research suggests the job market is becoming more equitable.

Studies published online by the National Bureau of Economic Research (NBER), found evidence that resume screening could be more equitable than it was 20 years ago. Specifically, a field experiment economists conducted in 2003 showed that “White names receive 50 percent more callbacks for interviews” than resumes using African-American names. The title of this report was “Are Emily and Greg More Employable than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination”

Another NBER study released this month, April 2024, stated, with regard to resumes sent in response to online job postings, that “the average racial gap in contact rates among firms awarded the worst grade is 24%, while the gap among firms awarded the best grade is only 3%.” While this is still far from perfect, it does represent a statistically significant improvement.

Although the research does not speculate on the reasons for change, we know that automated resume scanning would be unlikely to consider an applicant’s name. Could the much maligned ATS screeners be helping employers level the playing field for job applicants?

There are also reasons to be skeptical of such research. For example, the researchers sent out resumes with “African-American” names and “White” names. Their reports say the authors used statistical methods to determine what names to use. It was not subjective.

Other aspects of the research methodology differed because technology has changed in the intervening years. For example, researchers conducted the 2003 experiment by responding to newspaper ads. They responded to online job postings in the new study.

Data scientists and statisticians will, no doubt, find flaws in the methodology used in both studies. Social science experiments do not take place under controlled laboratory conditions. Nonetheless, statistical studies are better than anecdotal evidence. In simple terms, “your results may vary.”

Fortunately, we don’t have to rely solely on economic forces to make job markets more equitable. We can take control by marketing our skills better and upgrading our skills, too.

Soft skills are more important than ever.

As discussed in our Guide to the Post-pandemic Job Market, every employee must have soft skills, also referred to as leadership and people skills. People skills could be more important than ever because workforces are becoming more diverse. That means employees will interact with co-workers, customers, and suppliers who come from different cultural and economic backgrounds.

In July 2020, I spoke with Dr. Elnora Tena Webb, a leadership coach, and Tomoko Ha, a certified career management coach, about soft skills and hard skills during a webinar you can watch on LinkedIn. Dr. Webb suggested a list of leadership skills she believes all employees should demonstrate. A few skills on her list included:

• Effective communications,
• Reliability,
• Authenticity,
• Integrity.
• Honesty,
• Flexibility,
• Persistence,
• Work ethic,
•  Problem solving, and
• Continuous learning ability.

The National Association of Colleges and Employers (NACE) considers soft skills, such as teamwork and communications essential for new graduates entering the workforce.

While employers value soft skills for all employees, whether they are technical experts, front-line customer service staff, or senior leaders, they also hire candidates with the specific technical or professional skills needed on the job, HR people call these “hard skills.”

You need technical and professional skills.

Each employee needs specific skills to do their job. These are skills you may want to list on your resume and LinkedIn profile. They are also skills employers will test you on to verify your competency. For example, a few of the skills a client and I agreed to include on her resume targeting business analyst positions included:

• Business process improvement,
• Functional documentation,
• Requirements elicitation,
• Solutions design, and
• System implementation.

Both technical skills and people skills can be acquired on the job and in school. While employers place a high value on professional experience, there is strong evidence employers also recognize the role education plays in developing technical skills.

Education makes a difference.

Education pays, according to the US Department of Labor. You can improve your competitive position in two ways—long term college and graduate schooling, and short-term professional training.

Department of Labor statistics we reported on in August 2023 demonstrate the value of formal education. Workers with baccalaureate degrees earned 168% more than workers with high school diplomas in 2022.

While a college degree is still the “gold standard” for the education we tout to employers, this could be changing.  LinkedIn News reported last week that major employers such as Wells Fargo focus on “relevant skills” instead of degree requirements for many jobs.

Concluding comments Economic, social, and technological forces are changing the job market in ways we could not have predicted just a few years ago. But we don’t have to rely on outside forces to change our own future. We can promote the skills we have, and learn the skills we need for success in tomorrow’s market.